Daily Archives: February 24, 2009

Kate Mackenzie

(By Izabella Kaminska at FT Alphaville)

Olivier Jakob at Petromatrix continues his crusade against the United States Oil Fund in his Tuesday note, an issue increasingly being picked up across the commodities and investment spectrum. Read more

Ed Crooks

Barclays Capital, which has a very high-powered commodity research team, has kicked off its coverage of the European oil majors with an aggressively downbeat view of the sector.

The key line: “We believe the oil sector is entering a steeper and longer downturn than either the oil or equity markets imply, and that large-cap oil shares are not as defensive as currently priced.” Read more

Kate Mackenzie

On Energy Source:

Mileage tax suggestion flounders Read more

Kate Mackenzie

You don’t say.

There was unsurprisingly a strong reaction to US transport secretary Eric LaHood’s suggestion that the Obama administration could adopt a form of tax per miles driven. The idea was quickly batted away by the White House and roundly criticised by much of the commentariat and blogosphere for being wildly unpopular and reducing incentive to buy more fuel-efficient vehicles (though consultant Geoffrey Styles mounted a defence – or at least argued it should not be dismissed out of hand). Read more

Fiona Harvey

A new 47 page report from Deutsche Bank warns that the credibility of the EU’s emissions trading scheme is at risk ahead of crunch climate change talks taking place later this year in Copenhagen.

The EU ETS is the world’s flagship carbon trading system, and any damage to it would be a serious blow to the EU’s reputation for tackling climate change ahead of the UN talks. Read more

Kate Mackenzie

Some contrarian predictions from LCM Commodities analyst Ed Morse, via The National: demand growth will return, but it will be lower than the 1.5 to 1.8% seen in1991 – 2007. His reasoning:

Part of the economist’s argument is based on his observation that every previous oil price spike in the past 60 years has been followed by a lower rate of demand growth. Global demand was growing at 8 per cent annually before the 1973-1974 Arab oil embargo, but declined to just over 4 per cent annual growth in the late 1970s. After the oil price spike resulting from the 1979 Iranian revolution, annual demand growth fell again to just over 2 per cent, and dropped a third time following the 1990 price spike that accompanied the UN embargo on Iraqi and Kuwaiti oil. Read more

Kate Mackenzie

Infrastructurist has a piece by energy writer William Tucker on the ‘Smart Grid’ and its representation in popular culture – namely by GE, which has been running a striking advertising campaign on a smart grid theme (the scarecrow ad during Superbowl; its Smart Grid landing page is a recurring favourite on Delicious, though this may be due to its impressive Flash). Tucker picks apart the latest television ad:

He has two problems with this. Read more

Energy news headlines from elsewhere:

- Babcock Infrastructure halts shares on Powerco doubts (BloombergRead more

Energy news from the FT:

- EU in dispute about project financing
Discord on where and how to spend funds on energy Read more